Are Retailers' Channel-centric Mindsets Leaving Opportunities on the Table?
Outdated, channel-centric mindsets and organizational silos are partly to blame for retailers' inability to adopt unified commerce. Learn how to overcome this cultural conundrum so your organization can thrive.
The promise of unified commerce is a tantalizing one for today's retailers — the ability to integrate front-end and back-end systems; break down data silos; and enable real-time, customer-centric decision-making. This fresh approach delivers seamless experiences that meet the evolving expectations of modern consumers.
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Yet, for many in the retail industry, this promise remains frustratingly out of reach. Despite significant investments in new technologies and sales channels, the customer experience (CX) is often still fragmented, plagued by disconnected data and siloed organizational structures that hinder the delivery of truly unified journeys.
The root of this challenge lies not just in the technology itself, but in the outdated cultures and mindsets that continue to pervade the retail landscape. Rigid, channel-centric thinking has led to the creation of data silos, as well as organizational structures and incentives that are fundamentally at odds with the customer-centric approach required for unified commerce success.
These dual divides — in both data and people — are preventing retailers from unlocking the full benefits of unified commerce. By bridging these gaps and shifting towards a more collaborative, customer-focused future, retailers can harness the power of unified commerce to drive growth, efficiency and exceptional experiences that enable their organizations to thrive for years to come.
The cultural roadblock
A tangled organizational structure is a telltale sign that a retailer is still operating in a channel-centric manner, with disparate teams and incentives that are fundamentally at odds with the customer-centric approach required for unified commerce.
– Jay Custard, WWT Chief Digital Advisor
This siloed mindset manifests in myriad ways. Our retail clients often prioritize metrics and compensation structures that reward individual channel performance instead of the overall customer journey. This frequently leads to heated debates over "who gets credit" for sales involving multiple touchpoints. But perhaps the most evident sign of a culture issue is when IT and the business operate in isolation, rather than collaborating on a shared vision.
The impact of these cultural divides is felt by both customers and employees. Shoppers are left to navigate a fragmented experience, where promises made online don't align with in-store realities. Meanwhile, frontline staff are forced to juggle multiple disconnected systems, hampering their ability to provide the seamless service customers expect.
Ultimately, this channel-centric thinking results in retailers leaving opportunities on the table — both in terms of lost sales and eroded customer loyalty. Overcoming these deep-seated organizational challenges is a critical first step toward unlocking the true potential of unified commerce.
Taking inventory of your culture
Cultural transformation requires a top-down approach. Executives and CX leaders must embrace collaboration in their daily interactions, actively participating in cross-functional meetings, seeking input from various departments, openly sharing and receiving feedback, and encouraging others to do the same.
In addition to leading by example, we recommend leaders answer these key questions to understand their organization's current mindset and working practices:
- Are we truly customer-centric, or are we still operating in a channel-centric mindset? This manifests in everything from the metrics used to measure success to the organizational structures that reinforce silos. Retailers must take an honest look at whether their incentives and reporting lines are aligned with delivering seamless experiences.
- Have all the key stakeholders — from business to IT to operations — come together to align on a shared vision? Ensuring this vision is clearly communicated and cascaded throughout the entire organization is essential. Once in place, retailers can assess their current technology landscape; identify the critical systems and data sources to integrate; and determine what they should own versus outsource.
- What training programs and upskilling initiatives do our teams require to adopt new customer-centric, cross-functional ways of working? This could include everything from design thinking workshops to agile methodology training to change management coaching.
- How will the company celebrate and reward the cross-functional collaboration that unified commerce demands? This might involve revamping performance reviews to emphasize teamwork and shared goals or introducing new recognition programs that highlight employees who break down silos and deliver seamless experiences.
By addressing these questions head-on, retailers can ensure they are equipping their workforce with the right skills and incentives to embrace the cultural transformation required for unified commerce success.
Ringing up a new era of retail
Retailers can no longer afford to let outdated, channel-centric mindsets hold back their unified commerce ambitions. The promise of a seamless CX powered by integrated data and systems is a competitive imperative in today's rapidly evolving retail landscape. Those who fail to confront their own organizational biases and drive the necessary cultural transformation will fall behind.
– Andrew Brydon, WWT Executive Director of Digital
For CX leaders, the path forward is clear yet challenging. It requires a steadfast commitment to breaking down silos and fostering a culture of collaboration across all levels of the organization. By shifting from a channel-centric to a customer-centric mindset and aligning teams around a shared vision, leaders can unlock the full potential of unified commerce. This transformation will not only enhance customer loyalty and operational efficiency but also secure a sustainable competitive edge in the marketplace. The time to act is now, and the rewards for those who do will be substantial.
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